What are some of the new coverages related to property and casualty that may affect our company?

A. Cyber Security Liability: Provides coverage attributable to the lost customers and associated public relations expenses to rebuild an organization’s reputation after a breach within a company’s IT operations.

Credit Risk Insurance: With the number of bankruptcies of large domestic corporations and the increased risks associated with providing product or services to a customer not located in the United States, businesses are more interested in insuring their accounts receivables. Some customers have used their accounts receivable insurance policies to satisfy restricted loan agreements imposed by local banks.

Products Recall Insurance: Many more local corporations are buying products recall insurance. This is a coverage that has reduced in cost most recently and is readily available in the marketplace.

What steps should we be taking to ensure compliance with upcoming legislation or new federal regulations related to the Health Care Reform?

A. You should be receiving updates from your benefits consultant or insurance company regarding changes required of your company, and regulatory changes that are being automatically made to your plan by the provider. Insurance companies have issued specific bulletins outlining their action plans with their insureds. We can assist in providing guidance regarding these changes.

How can we reduce our health care costs for our employees?

A. Many employers are taking the approach of cost sharing and cost shifting; both in terms of employee contribution and changing co-payments and deductibles. You may also qualify for a regional health care plan for your company.

What is ‘third-party crime’ coverage?

A. Third-party crime insurance covers a company against loss of money or securities to a third party, caused by one of their employees or representatives. This is different from “employee dishonesty” which covers a business against employees stealing from their own company. In both cases, more businesses are buying employee theft coverage in this economy.

What is ‘drive other car’ coverage?

A. If a business has company vehicles for its owners or executive employees, they need to purchase liability insurance to protect the drivers who do not have a personal auto policy in the household. This coverage protects the individuals for lawsuits brought against them while driving someone else’s vehicle.

How do I insure my vacant building?

A. We have had more frequent requests to insure vacant buildings. Your agent does need to know if your building is vacant since your standard policy has restrictions which exclude theft and vandalism after 30 days and all coverage after a building has been vacant for 60 days. You can purchase a policy that permits your building to be vacant and a number of insurance companies are responding to this issue as the market demand has increased.

My company just purchased a large commercial building for ‘almost nothing’, yet the building is worth several million dollars. We cannot afford to insure the building for replacement cost or even for actual cash value, however, we need coverage in the event of a small claim to cover our investment.

A. Due to the change in market value of commercial buildings, there is a product offered to cover “investment value” of a building, even if it is vacant, which will not penalize you in the event of a coinsurance deficiency in replacement cost or actual cash value. This is also different from a “market value” policy. We can obtain a quotation for you to cover your investment while the real estate market remains down.